Attaché Sprint Refresh Payroll Termination Types and Payments (Australia)

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1 Attaché Sprint Refresh 2015 Payroll Termination Types and Payments (Australia) October 2015

2 Publication Number Publication Date Product A001434C.00 October 2015 Attaché Training Attaché Software Australia Pty Ltd ACN ABN Level 5, 118 Talavera Road, Macquarie Park NSW 2113 Australia PO Box 1824 Macquarie Centre, North Ryde 2113 Australia Tel Fax Attaché Software New Zealand Pty Ltd 48 Greys Ave, Auckland New Zealand Tel Fax info@attachesoftware.com Website: Attaché Software Australia Pty Limited Attaché Sprint Refresh 2015 Payroll Termination Types and Payments (Australia) 2

3 Contents Types of Terminations... 4 Termination Categories... 4 What to pay on termination?... 4 Payment Summary Boxes... 4 Employment Termination Payments (ETPs)... 5 Employment Termination Payments (ETPs)... 6 Common types of ETPs... 6 ETP Payment Types... 6 Attaché Sprint Refresh 2015 Payroll Termination Types and Payments (Australia) 3

4 Types of Terminations Resignation Termination Dismissal Genuine Redundancy Early Retirement Scheme Invalidity Death Termination Categories Before we can calculate tax, need to establish termination category. There are three possible categories:- Resignation/Termination/Dismissal Genuine Redundancy/Early Retirement Scheme/Invalidity Death What to pay on termination? Unused annual leave Leave loading Unused long service leave possibly Personal/Carers leave sometimes Contractual Termination Payments Unused RDOs Payment in Lieu of Notice Ex gratia or discretionary payments Severance Payments Payment Summary Boxes When we know the reason for the termination and what we are paying we can process the termination pay in Attaché payroll and allocate to the payment summary boxes. There are four possible options of where termination amounts Attaché Sprint Refresh 2015belong on a normal payment summary. Gross Payments Attaché Sprint Refresh 2015 Payroll Termination Types and Payments (Australia) 4

5 Lump sum A Lump sum B Lump sum D Plus an extra category which has its own payment summary. Employment Termination Payments (ETPs) If the reason for departure is Resignation/Termination/Dismissal there are three options of where termination amounts belong on a normal payment summary. Gross Payments Lump sum A Lump sum B, plus Employment Termination Payments (ETPs) Payment Type Accrual Date Payment Summary Label Long Service Leave Pre 16 August 1978 B 16 August 1978 to 17 August A 1993 Post 17 August 1993 Gross Payments Annual Leave and Leave Pre 18 August 1993 A Loading Post 17 August 1993 Gross Payments If the reason for the departure is Genuine Redundancy/Early Retirement Scheme/Invalidity there are three options for where termination amounts belong on a normal payment summary. Lump sum A Lump sum B Lump sum D, plus Employment Termination Payments (ETPs) Payment Type Accrual Date Payment Summary Label Long Service Leave Pre 16 August 1978 B Post 15 August 1993 A Annual Leave and Leave All A Loading Genuine Redundancy/Early Retirement Scheme D Attaché Sprint Refresh 2015 Payroll Termination Types and Payments (Australia) 5

6 Employment Termination Payments (ETPs) Common types of ETPs Unused rostered days off (RDOs) In lieu of notice Unused personal/carer s leave Gratuity or golden handshake Compensation for loss of job/wrongful dismissal Genuine redundancy and approved early retirement scheme payments in excess of the tax-free amount ETP Payment Types R = ETP Made because of one of the following: Early Retirement Scheme Genuine Redundancy Invalidity Compensation for O = Other Personal injury Unfair dismissal Harassment Discrimination ETP not described by R: Golden handshake/gratuity Payment in lieu of notice Payment for unused sick leave Payment for unused rostered days off S = Prior year Redundancy/Retirement You made a payment type R to an employee in a previous income year for the same termination P = Prior Year Other ETP You made a payment type O to an employee in a previous income year for the same termination Attaché Sprint Refresh 2015 Payroll Termination Types and Payments (Australia) 6

7 D = Death benefit ETP paid to a dependant of the deceased N = Death benefit ETP paid to a non-dependant of the deceased B = Death benefit ETP paid to a non-dependant of the deceased and you made a termination payment to the non-dependant in a previous income year for the same termination T = Death benefit ETP paid to a trustee of the deceased estate Attaché Sprint Refresh 2015 Payroll Termination Types and Payments (Australia) 7

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